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Mutual Funds

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  • No lock-in period so redeem anytime
  • Invest lump-sum or via SIP
  • Start with INR 100
About Mutual Funds

What are Mutual Funds?

  • A mutual fund is an investment vehicle that pools money from multiple investors and allocates it across stocks, bonds, government securities, and money market instruments.

  • As India’s one-stop destination for fixed returns, Grip now offers debt mutual funds that invest in a diversified pool of government bonds, corporate bonds and other fixed-income securities which is ideal for earning stable and fixed returns.

  • These funds are actively managed by leading asset management companies (AMC) like HDFC, ICICI Prudential, Nippon Life. 

  • Historical returns of these mutual funds have been 7-12% as compared to 3-7% from Bank FDs.

  • You can invest either a lump sum amount or start a SIP. Mutual Funds allow easy exit with an option to redeem anytime with no lock-in period.

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Mutual Funds
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Corporate FDs
Returns
7-12%
3-7%
Risk
Low to Moderate
Low
Redeem/Sell Anytime
Yes
Yes
Tax
Taxable as per income tax slab
Taxable as per income tax slab
SIP
Yes
No
Minimum Investment
INR 100
INR 100
Offered By
HDFC, ICICI, SBI AMCs
HDFC, ICICI, SBI

REASON AND BENEFITS

Why Invest in Mutual Funds?

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Potential for Higher Returns than FDs

Debt mutual funds made 25-50% higher post-tax returns compared to Bank Fixed Deposits.

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Low Risk Through Diversification

These funds invest across a diverse mix of government bonds, corporate bonds, and other fixed-return securities with an average rating of AA/ AAA. Diversification helps further reduce risk.

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Smart Choice for Short-Term Holding

Ideal for investors looking to park funds for short to medium durations. Debt mutual funds offer predictable and steady returns with the flexibility of easy entry and exit.

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Professionally Managed by Top AMCs

Actively managed by experienced fund managers from reputed Asset Management Companies (AMCs) like HDFC, ICICI, Nippon Life, who optimize your portfolio to balance risk and reward so you don’t have to.

Evaluation
How to Evaluate Mutual Funds?
  • Past Returns: Look for consistent performance across 1, 3, and 5 years. This helps assess the fund’s stability and ability to deliver returns in varying market conditions.
  • Expense Ratio: Lower is better. A low expense ratio means more of your returns are retained, boosting your overall long-term gains.
  • Exit Load: If you plan to invest for shorter durations, choose funds with low or zero exit load to avoid unnecessary charges on early redemption.
  • Modified Duration: For lower interest rate sensitivity, opt for funds with a shorter modified duration—they carry less risk during rate fluctuations.
  • Fund Rating: Prefer highly rated funds (4-star or 5-star) by agencies like CRISIL or Morningstar, as they indicate strong past performance and better risk management
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For your knowledge

Risks Involved in Mutual Funds

  • Credit Risk: If the issuer of a bond defaults on interest or principal payments, it can negatively impact the fund's NAV. Lower-rated securities carry a higher risk of default.
  • Liquidity Risk: In certain market conditions, the fund may find it difficult to sell its bond holdings without impacting the price, especially for lower-rated or less-traded securities.
  • Interest Rate Risk: Bond prices and interest rates move in opposite directions. When interest rates rise, the value of existing bonds may fall, affecting fund returns—especially in long-duration funds.
  • Inflation Risk: Although relatively stable, the real value of returns may be eroded over time if inflation outpaces the fund's yield.

OTHER OFFERINGS

Other Secured Fixed-Income Products By Grip Invest

Corporate Bonds

Corporate Bonds

  • Securities issued by corporates & NBFCs
  • Up to 14% pre-tax YTM
  • Start investing with Rs 1,000
  • Exchange listed and credit rated
LeaseX

LeaseX

  • Lease mission-critical assets to reputable companies
  • Up to 14% pre-tax YTM
  • Start investing with Rs 1,00,000
  • SEBI/RBI complaint and credit rated
InvoiceX

InvoiceX

  • Loans backed by Invoice Discounting
  • Up to 14% pre-tax YTM
  • Start investing with Rs 1,00,000
  • SEBI/RBI complaint and credit rated
LoanX

LoanX

  • Diverse pool of loans from top NBFCs
  • Up to 14% pre-tax
  • Start investing with Rs 1,00,000
  • SEBI/RBI complaint and credit rated
Baskets

Baskets

  • Theme based investing
  • Up to 14% pre-tax YTM
  • Start investing with Rs 5,000
  • SEBI/RBI complaint and credit rated

To help you

Frequently Asked Questions

What are Mutual Funds?

A mutual fund pools money from investors and invests it in stocks, bonds, and other securities for steady growth. Grip now offers debt mutual funds where you can invest in a diversified portfolio of bonds and money market instruments that have historically earned returns of up to 12%.
Mutual funds collect money from multiple investors and combine it into a single large pool. A fund manager invests this pooled money in a mix of assets like stocks, bonds, or government securities, based on the fund’s objective.
  1. Liquid Funds: Money market instruments with maturities up to 91 days. Liquid Funds tend to offer better returns than savings accounts and are a good alternative for short-term investment.
  2. Ultra Short-Term Funds: which invests in money market instruments and short-term debt securities, with an average investment duration of 3 to 6 months.
  3. Short-Term Debt Funds: which invests in money market instruments and debt securities, with an average investment duration of 1 to 3 years.
  4. Banking & PSU Fund: which invests at least 80% of its total assets in debt securities of PSUs (public sector undertakings) and banks. 
  5. Government Bond Funds: Backed by the government; low risk
  6. Corporate Bond Funds: which invests a minimum of 80% of its total assets in corporate bonds having the highest ratings. These funds are good for investors with lower risk tolerance and seeking to invest in high-quality corporate bonds.
  7. Short-Term & Ultra Short-Term Funds: which invests in money market instruments and debt securities, with an average investment duration of 3 to 6 months.
  8. Credit Risk Funds: which invests a minimum of 65% of its investible corpus in corporate bonds having ratings of AA or below. Therefore, these funds carry an amount of credit risk and offer better returns than Corporate Bond Funds.
  9. Dynamic Bond Funds: which invests in debt instruments of varying maturities based on the interest rate regime. These funds are good for investors with moderate risk tolerance and an investment horizon of 3 to 5 years.
  10. Floating Rate Funds: which invests a minimum of 65% of its investible corpus in floating rate instruments. These funds carry a low interest-rate risk.
Yes, some debt mutual funds offer monthly income options through dividend payouts or withdrawal plans. However, these are not guaranteed and depend on the fund’s performance and cash flow.

 

The mutual fund manager charges a fee for managing your money. This fee is referred to as the expense ratio and is expressed in terms of a percentage of the AUM. The expense ratio is charged before the scheme declares the daily NAV. Additionally, a stamp duty of 0.005% of the total investment amount is applicable at the time of purchase.
Mutual funds in debt are better for low-risk, stable returns, while equity funds are suited for high-growth, long-term investing. Your choice should depend on your goals, time horizon, and risk appetite.

You can invest in mutual funds easily through Grip Invest. The platform offers carefully curated bond mutual funds with transparent returns and detailed risk insights. To get started, simply:

  • Sign up on the Grip Invest website or app
     
  • Complete your KYC using your PAN and bank details
     
  • Explore and invest in mutual funds that match your risk-return profile
     

Grip simplifies the investment process and helps you make informed decisions with expert-curated options.